Generative artificial intelligence (GenAI) continues to capture the venture capital (VC) investors’ attention, with funding in the US soaring past $50 billion in the first five months of 2025 alone. Despite a rebound in early 2025, China still trails significantly due to regulatory headwinds, highlighting a widening gap between the two markets in their pursuit of dominance in GenAI innovation, according to GlobalData, a leading data and analytics company.
An analysis of GlobalData’s Deals Database reveals that the US has emerged as a clear leader. Although China has also garnered investors’ attention but lagged significantly compared to the US.
In the US, the number of VC deals announced in the GenAI space has surged from around 50 deals in 2020 to more than 600 deals in 2024 while 2025 (January to 26 May) so far has already seen the announcement of more than 200 deals. Similarly, the total VC deal value in the US skyrocketed from around $800 million in 2020 to a staggering $39 billion in 2024. Notably, it has already surpassed $50 billion in just the first five months of 2025. This explosive growth underscores the robust appetite for innovation and investment in the GenAI space.
Aurojyoti Bose, Lead Analyst at GlobalData, comments: "This growth trajectory positions the US as a powerhouse in GenAI investment, showcasing a strong commitment to fostering technological advancement. The underlying factors contributing to the US’ dominance in the GenAI space include a well-established venture capital ecosystem, a culture of innovation, and a regulatory environment that encourages investment in emerging technologies.”
Meanwhile, China's VC funding activity in the GenAI space has also shown growth but lags far behind the US. Starting with just one deal in 2020 and peaking at 39 deals in 2024, the country has seen the announcement of 14 deals in 2025 so far.
China's VC deal value has also remained relatively lower, from around $40 million in 2020 to peaking at around $400 million in 2023 followed by a decline to around $140 million in 2024. However, VC funding value rebounded strongly in early 2025 with the first five months of the year itself seeing around $250 million worth of deals announcement.
Bose concludes: “The US has positioned itself as a global leader in the GenAI space driven by substantial investments from venture capitalists eager to capitalize on the transformative potential of this technology. In contrast, China's challenges in attracting similar levels of investment reflect broader issues within its tech ecosystem, including regulatory constraints. Nevertheless, China's ability to adapt and create a more favorable environment for GenAI development will be crucial for its long-term competitiveness in the global tech landscape.”
Note: Historic data may change in case some deals get added to previous months because of a delay in disclosure of information in the public domain.
